BitGold Explained

BitGold Inc. went public a couple of days ago on May 13, 2015. BitGold is their only product. BitGold is a Canadian company based in Toronto. You can sign up for an account here.

Here are some answers you need to know to understand BitGold.

BitGold is a financial platform where your money is denominated in gold. It’s like any other bank account in that you can deposit money that is converted at the current rate for gold and you can spend it in any currency or transfer it as gold.

BitGold is not a pseudo currency or cloud currency. It is real gold stored in insured Brink’s depositories located in Zurich, Hong Kong, London, Singapore, Toronto or Dubai. It is 100% insured.

The gold belongs to you. BitGold does not rehypothecate or otherwise pledge your gold for any reason at any time. BitGold does not hedge. It’s your gold.

Think of BitGold as PayPal but denominated in grams of gold. You can transfer or receive BitGold with any other BitGold user. You can spend it anywhere.

Due to American financial regulations, BitGold is not currently available to US residents.

BitGold will be issuing Debit cards for BitGold account holders in the near future. While your account is in gold, you can spend money anywhere in the world in the local currency with the card.

BitGold maintains a stock of gold in their own account. When a BitGold account holder wants to buy or sell gold, they buy or sell it to BitGold at the current price of gold. BitGold charges a 1% fee for either buying or selling gold. That’s how they make their money. For the account holder BitGold offers the lowest price to buy gold and the highest price to sell gold and 100% liquidity.

BitGold account holders may transfer money out of their account at any time based on the current price of gold. Should account holders want physical gold, they can take delivery in either 10-gram cubes or 1-kilo bars. There is a small, about $25 CAD redemption and mail fee for either the 10-gram cubes or 1-kilo bars.

BitGold has no counterparty risk. You own it. It’s yours.

There are no storage fees.

There are no fees other than the 1% in and out fee and the $25 CAD fee for physical delivery.

When the banking system crashes, your gold is safe. No bail-in possible.

The safest way to own gold is to hold it in your greedy little mitts. BitGold is the 2nd safest way to own gold.

Governments around the world have declared a war on cash. You have the benefit of having access to your money in the form of gold. You effectively have cash without having cash.